As focused on yesterday, “5 waves down from 1.6018 confirms that the an important top is in place. The rally from 1.5554 is in 3 waves and is therefore corrective. 1.5694 may be the top of wave 2 (as shown above). The alternate count treats the rally from 1.5554 to 1.5694 as wave w in a larger w, x, y correction.
Potential resistance on a push through 1.5694 begins at 1.5731.” The developments this morning make it likely that 1.5694 is the top of wave 2 since the EURUSD has already dropped below 1.5554. For wave 2 to end above 1.5694, the pair would have to trace out an expanded flat, which is more common in 4th waves. In summary, expect the EURUSD decline to accelerate in a 3rd wave.
